Textbook Notes (363,559)
Canada (158,426)
York University (12,360)
HRM 3430 (83)
Chapter 6

Chapter 6 - The HR Forecasting Process

11 Pages
Unlock Document

York University
Human Resources Management
HRM 3430
Gordon Qi Wang

Chapter 6 HR Forecasting the heart of the HR planning process, can be defined as determining the net requirement for personnel by determining the demand for and supply of human resources now and in the future. Forecasting activity can be subdivided into three categories: 1. Transaction-based forecasting focuses on tracking internal change instituted by the organizations managers. 2. Event-based forecasting concerned with change in the external environment. 3. Process-based forecasting not focused on a specific internal organizational event but on the flow or sequencing of several work activities (e.g. the warehousing shipping process) - Forecasting is only an approximation of possible future states and is an activity that strongly favours quantitative and easily codified techniques. - Studies have shown that accuracy of prediction improves significantly when a variety of forecasting techniques are used. HR Forecasting in a Global Economy Organizations that operate globally can have their global HR planning managers, encourage employee collaboration through: Maximizing use of technology such as e-mail Explicitly scheduling work to take advantage of time zone differences o Preparing a contract in advanced time zone, which can then be sent to a client firm, in a time zone several hours behind Elimination of redundant costs through centralizing data in the HRMS HR Planning should be: Strategic and forward looking Comprehensive and encompass all employee groups and management functions Tailored to the specific culture and attributes of the organization to which it is being applied Benefits of HR Forecasting 1. Reduces HR Costs Effective HR Forecasting will allow organizations to develop internal workers and obtain the best external recruits. This means organizations will be less likely to have to react in a costly last-minute crisis mode to unexpected developments in the internal or external labour markets. 2. Increases Organizational Flexibility 3. Ensures a close linkage to the macro business forecasting process 4. Ensures that organizational requirements take precedence over issues of resource constraint and scarcity HR Demand the organizations projected requirement for human resources HR Supply the availability of workers to meet the demand requirement, obtained either internally or from external agencies. Why HR System Implementation Efforts Fail 1. The organizations top management has not communicated the need to implement new technology or new systems. 2. People resist change efforts because they are not asked to help develop new business strategies, solutions and plans. 3. Organizations underestimate the time, energy, budget and planning required to successfully implement new technology. 4. Different groups within an organization either cannot agree on what a system needs to do or overburden it with too many requirements. Personnel Categories given more attention in forecasting process: 1. Specialist/Technical/Professional Personnel Workers holding trade qualifications which are in high demand Workers who require lengthy preparatory training for attainment of skill competency As these workers are in high demand both in Canada and abroad, special attention has to be given to programs to induce these workers to join an organization. Attention to benchmarking compensation schemes to meet or lead industry standards to attract and retain people Longer time to recruit because of the need for a more comprehensive and larger geographical search for this specialist talent pool 2. Employment Equity-Designated Group Membership Four designated groups: o People of Aboriginal descent o Womeno People with disabilities o Members of visible minorities 3. Managerial and Executive Personnel The organizations survival and future success depend directly on succession and replacement planning. Leaders who are able to transform organizational culture and anticipate external change, and who possess the dynamic personal attributes necessary to unify the organization, are very rare 4. Recruits Recruiting trainees is extremely important to the success of the Organizations overall HR policies Forecasting Process 1. Identify organizational goals, objectives and plans 2. Determine overall demand requirements for personnel 3. Assess in-house skills and other internal supply characteristics 4. Determine the net demand
More Less

Related notes for HRM 3430

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.